Kinara Capital Secures USD 10 Million from IndusInd Bank with 100 Percent Guaranty from U.S. International Development Finance Corporation (DFC)

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Combined Debt & Equity Round of INR 100 Crores to Accelerate MSME Financial Inclusion Bangalore, Karnataka, India – Business Wire India Kinara Capital, a socially responsible fintech, today announced securing USD $10 million (INR 74 crores) from IndusInd Bank with a 100% guaranty from the U.S. International Development Finance Corporation (DFC). This is a part of a debt and equity round of INR 100 crores, with equity contribution coming from Kinara’s existing investors – Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation (MSDF) and Patamar Capital. This investment will be utilized by Kinara Capital towards the expansion of MSME financial inclusion across manufacturing, trading, and services sectors in India. Kinara Capital is at the forefront of driving financial inclusion in India and has disbursed INR 2000 crores across 56,000+ collateral-free small business loans.

The special USD $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Bank’s Impact Investing division with full backing from DFC, part of the US federal government and an emerging markets impact leader. This three-way partnership between Kinara Capital, IndusInd Bank and DFC unites the organizations’ shared goals to promote entrepreneurship, financial inclusion and job creation.

“Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India,” said Hardika Shah, Founder & CEO, Kinara Capital, “MSMEs galvanize India’s economy with income generation and job creation and there is an ever increasing demand for financing for businesses to rebuild and grow this year. This investment from IndusInd Bank and DFC will accelerate financial inclusion of small businesses, thereby invigorating local economies.” “We are glad to have associated with DFC to support a strong impact creating entity, Kinara Capital, in their growth trajectory,” said Roopa Satish, Head, Corporate & Investment Banking, CSR & Sustainable Banking, IndusInd Bank, “The guaranty from DFC eliminates foreign exchange rate fluctuation risk from the balance sheet of Kinara and it has become an important tool to mobilize debt funding for impact space companies.” “We hold the organizations that we fund to a very high standard and Kinara Capital is a role model when it comes to last-mile delivery,” said Loren Rodwin, Managing Director, Social Enterprise Finance Team, Office of Development Credit at U.S. International Development Finance Corporation (DFC). “Commitment towards financial inclusion from Kinara Capital has made it possible for us to collaboratively help India’s small business entrepreneurs. We are motivated by the high potential and the high prospects of the diverse MSME sector in India and proud to partner with both IndusInd and Kinara Capital.” Kinara Capital brings a wide variety of MSMEs into the financial inclusion fold, such as small-scale manufacturing industries to general retail shops to service businesses, by providing collateral-free business loans in the range of INR 1 lakh to INR 30 lakhs. In offering both digital and doorstep customer service options, MSMEs appreciate the convenience of Kinara’s fast 24-hour direct disbursements and flexible payment options on 400+ platforms, such as Google Pay.

Artificial Intelligence and Machine Learning (AI/ML) based data-driven automated credit decisioning enables Kinara to lend confidently without relying on property collateral or credit scores for risk assessment. Thus, about 90% of Kinara’s customer base is new to credit, receiving its first-ever business loan from the company. The social impact of Kinara’s financial inclusion work to date has led to an incremental income generation of INR 700+ crores for small business entrepreneurs and led to more than 250,000 jobs created or sustained across 90+ urban, peri-urban and rural locations in India.

About Kinara Capital Kinara Capital is a socially responsible fintech non-banking financial company (NBFC) propelling the financial inclusion of small business entrepreneurs with fast & flexible collateral-free business loans. The company boasts a women-majority management team and is globally recognized for its innovations. The IFC/World Bank named Kinara Capital as ‘Bank of the Year-Asia’ 2019 and Financial Times ranked it among the Top 100 High-Growth Companies in Asia-Pacific. Headquartered in Bangalore, the company operates 110 branches in 90+ cities in India. Kinara Capital is recognized as a Systemically Important NBFC by the Reserve Bank of India (RBI) and is a debt listed entity on the Bombay Stock Exchange (BSE). Click here for more information kinaracapital.com and follow us on Twitter @KinaraCapital About IndusInd Bank IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on September 30, 2020, IndusInd Bank has 1910 Branches/ Banking Outlet and 2785 ATMs spread across 751 geographical locations of the country. The Bank also has representative offices in London, Dubai and Abu Dhabi. The Bank believes in driving its business through technology. It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and major commodity exchanges in the country, including MCX, NCDEX and NMCE. IndusInd Bank was included in the NIFTY 50 benchmark index on April 1, 2013.

Domestic Ratings • CRISIL AA + for Infra Bonds program • CRISIL AA for Additional Tier I Bonds program • CRISIL A1+ for certificate of deposit/short term fixed deposits program • IND AA+ for Senior bonds program by India Ratings and Research • IND AA for Additional Tier I Bonds program by India Ratings and Research • IND A1+ for Short Term Debt Instruments by India Ratings and Research About U.S. International Development Finance Corporation (DFC) U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to standards and respect the environment, human rights, and worker rights.

This press release may contain projections and other forward-looking statements regarding future events or future financial performance. These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. Given business risks and uncertainties, undue reliance on these forward-looking statements should not be placed. Actual events or results may differ materially from those contained in the projections or forward-looking statements.

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